How Much Do Retired NFL Players Make?

How much do retired NFL players make? It’s a question many fans ask, and we’ve got the answer.

pensions

NFL pension plans are some of the best in all of professional sports. All vested players are fully guaranteed to receive their pensions regardless of any future league revenue growth. So, how much do retired NFL players make?

average pension

NFL players are vested in the league’s pension plan after three years of service. The average NFL career lasts just over four years, so most players will qualify for a pension.

The amount of the pension benefit is based on the number of credited seasons a player has earned. A credited season is defined as four or more regular season games on a team’s active/inactive, reserve/physically unable to perform or exempt list.

Players with fewer than four years of service will not be eligible for a pension benefit, but they may qualify for other benefits such as 401(k) matching contributions and up to $20,000 in injury protection.

As of 2018, the average annual pension benefit for a retired NFL player is $43,965. The maximum annual benefit for a player with 10 or more credited seasons is $244,836.

how pension is calculated

Pensions for retired NFL players are calculated using a formula that takes into account the number of years of service, the average salary over the player’s best three years, and other factors. The amount of the pension is also determined by whether the player elects to receive it as a lump sum or an annuity.

disability

Players who have played in the NFL for at least three years and have been medically determined to have a permanent disability are eligible to receive disability payments. While the amount of the disability payment is based on the player’s length of service and the severity of the disability, the maximum amount that can be received is $200,000.

what is considered a disability

In the United States, the Social Security Administration (SSA) defines disability as the “inability to engage in any substantial gainful activity (SGA) by reason of any medically determined physical or mental impairment(s) which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.”

how disability is calculated

Total and Permanent Disability (TPD) insurance provides a benefit to you if you become disabled and are unable to work. TPD benefits are generally tax-free.

The amount of the benefit is based on your age, salary, and the length of time you have been employed. If you have been employed for less than five years, your benefit will be based on your salary at the time of disability. If you have been employed for more than five years, your benefit will be based on your average salary over the last five years.

To receive a TPD benefit, you must be:
-Unable to work in your own occupation; and
-Unable to work in any other occupation for which you are qualified by training, education, or experience

other income

In addition to pensions and other benefits, many retired NFL players also receive income from other sources. This can include speaking engagements, coaching, broadcasting, and endorsements. Some players also open businesses or restaurants.

investments

According to an article in Forbes, the average retired NFL player has an annual income of $52,000 from investments. This is in addition to any income they may receive from pensions or other sources.

speaking engagements

Many popular and successful NFL retirees give speeches at various events across the country. They are paid handsomely for their appearances, with some of the most popular players earning upwards of $50,000 per engagement. While this is undoubtedly a significant source of income for retired NFL players, it should be noted that there are relatively few players who are able to command such high fees. The vast majority of retired players earn considerably less from speaking engagements, with many only making a few thousand dollars per year from this activity.

product endorsements

In recent years, retired NFL players have been able to supplement their income with earnings from product endorsements. While the average player doesn’t earn nearly as much as they did during their playing days, some have been able to score big paydays by aligning themselves with the right brands.

Former quarterback Peyton Manning is one of the most successful retired NFL players when it comes to product endorsements. He has reportedly earned more than $150 million from deals with companies like Nike, DirecTV, and Buick. Other retired NFL stars like Marshawn Lynch and Odell Beckham Jr. have also landed multi-million dollar endorsement deals.

Of course, not all retired NFL players are able to land major endorsement deals. Most will have to settle for more modest contracts with local businesses or smaller companies. But even these deals can provide a nice boost to a retired player’s income.